Ramaphosa orders SIU probe into Suliman Carrim
Ramaphosa orders SIU probe into Suliman Carrim after President Cyril Ramaphosa authorised the Special Investigating Unit (SIU) to investigate allegations involving multimillion-rand transport contracts linked to businessman Suliman Carrim.
The investigation focuses on the affairs of North West Transport Investments (SOC) Limited, its subsidiaries and procurement and contracting processes involving companies linked to Carrim.
According to the SIU, Ramaphosa has signed a new proclamation empowering the unit to investigate allegations of serious maladministration, corruption, irregular expenditure and possible improper benefits. The investigation also gives the SIU authority to pursue the recovery of financial losses suffered by the state or affected institutions where wrongdoing is established.
The development represents a significant escalation in scrutiny of Carrim’s business interests following evidence heard by the Madlanga Commission of Inquiry.
Carrim has been the subject of intense public attention after evidence presented to the commission raised questions about his business dealings and relationships with other prominent figures.
It is important to stress that the SIU investigation is an investigation into allegations and does not itself establish that Carrim or any other person committed wrongdoing.
Cyril Ramaphosa investigation targets public contracts
The Cyril Ramaphosa investigation authorisation gives the SIU a broad mandate to examine procurement and contracting processes associated with North West Transport Investments.
The SIU will investigate the procurement of fuel supplied by Zentrafor Fuel, trading as FuelU, vehicle rental services and commuter bus services.
Investigators will also examine the processing, approval and payment of claims submitted by Tansanat Coachlines, Ziggy Investments and the Tansanat Coachlines-Ziggy Investments joint venture.
The SIU will determine whether the procurement processes complied with applicable legislation and National Treasury or provincial treasury guidelines.
It will also examine whether any individuals or entities received undue benefits and whether serious maladministration resulted in actual or potential financial losses.
The investigation is therefore not limited to a single tender.
Instead, investigators have been given authority to examine a broader network of contracts, payments and decisions involving the state-owned transport entities.
Transnat Coach Lines tender comes under scrutiny
The Transnat Coach Lines tender is among the contracts that has attracted attention following evidence presented during the Madlanga Commission.
The North West government previously confirmed that companies linked to Carrim received several contracts.
One of the largest was a commuter transport contract worth approximately R168 million awarded to a joint venture involving Tansanat Coachlines and Ziggy Investments.
The North West government previously stated that work associated with the contracts had been completed and verified by the relevant departments.
However, the new SIU investigation means the circumstances surrounding the procurement and subsequent payments can now be examined independently by investigators.
The SIU will look at whether the relevant procurement processes complied with the law, whether contracts were properly administered and whether any party received an improper or undue benefit.
This could include examining documentation, payments, approvals, contractual amendments and relationships between the companies and state entities.
R168 million contract becomes key focus
The R168 million contract is particularly significant because of its size and the evidence presented to the Madlanga Commission concerning the business relationship between companies linked to Carrim and the late taxi boss Jotham “King Mswazi” Msibi.
Evidence presented to the commission indicated that a joint venture involving Carrim’s Ziggy Investments and Transnational Coaches had business dealings connected to Msibi.
The commission heard that the joint venture was involved in subsidised bus transport opportunities in Gauteng and North West.
Evidence presented to the commission also referred to payments involving companies associated with Msibi. The commission cautioned that some of the evidence remained untested.
The SIU will now have the statutory authority to investigate these matters as part of its broader examination of the North West transport entities.
The investigation could therefore provide a clearer picture of how the contracts were awarded, how the joint venture operated and whether any financial transactions resulted in an improper benefit or loss to the state.
SIU to investigate North West Transport Investments
North West Transport Investments is central to the new investigation.
The company, also known as NTI, has experienced financial difficulties and is currently in business rescue.
The SIU will examine the affairs of NTI, its wholly owned subsidiary North West Star and Atteridgeville Bus Service, which is owned by North West Star.
Investigators will examine the role played by the business rescue practitioner appointed in July 2022, as well as the actions of agents and employees where those actions are relevant to the investigation.
The SIU will also investigate claims submitted by Carrim-linked companies and determine whether those claims were properly processed, approved and paid.
This aspect of the investigation could be important because it allows investigators to look beyond the initial awarding of contracts and examine what happened after the agreements were concluded.
The unit can also investigate whether the conduct of individuals or entities caused actual or potential prejudice to NTI or the state.
Alleged improper benefits under investigation
A central part of the Suliman Carrim SIU probe will be determining whether any person or company received an undue benefit.
The SIU’s mandate allows investigators to examine whether conduct surrounding the contracts breached legislation, Treasury guidelines or other applicable rules.
If investigators establish that state funds were lost because of corruption, maladministration or other unlawful conduct, the SIU can take steps aimed at recovering those losses.
The SIU’s role is therefore not simply to establish what happened.
Its mandate also includes pursuing civil recovery where evidence supports such action.
This could potentially result in legal proceedings seeking the recovery of money or assets linked to proven wrongdoing.
eThekwini Municipality contracts investigation expanded
The new proclamation also comes as the SIU’s existing investigation into eThekwini Municipality contracts is expanded.
The investigation concerns allegations relating to security and VIP protection services at the municipality.
The latest amendment expands the scope to include additional contracts, extensions and variations associated with the services under investigation.
The expansion means investigators will be able to examine a wider range of municipal procurement decisions and related contractual arrangements.
As with the North West investigation, the objective is to establish whether proper procurement procedures were followed and whether corruption, maladministration or irregular expenditure occurred.
The SIU can also investigate whether any individuals or companies received improper benefits and whether the municipality suffered financial losses.
The expansion comes amid broader concerns about procurement and governance at major public institutions.
What the SIU can do next
The SIU has extensive investigative powers under its statutory mandate.
Investigators can examine documents, financial transactions, procurement records and contractual arrangements relevant to the proclamation.
Where evidence points to wrongdoing that caused financial losses, the unit can pursue civil recovery proceedings.
The SIU can also refer evidence of criminal conduct to the relevant law-enforcement authorities.
The outcome of the investigation will therefore depend on the evidence collected and the findings reached by investigators.
The authorisation does not mean that allegations against Carrim or any other person have been proven.
Instead, it provides investigators with the legal mandate to examine the allegations and establish whether any wrongdoing occurred.
Madlanga Commission evidence adds context
The Cyril Ramaphosa investigation comes against the backdrop of evidence heard by the Madlanga Commission.
The commission has examined allegations involving corruption, criminal networks and relationships between business figures, politicians and law-enforcement structures.
Carrim’s business interests have featured prominently in some of the evidence presented.
The commission heard evidence concerning contracts awarded to Carrim-linked companies, as well as financial dealings involving other individuals.
However, evidence presented at a commission of inquiry is not automatically proof of criminal conduct.
Some allegations remain contested or untested, and individuals named in evidence retain their legal rights and the presumption of innocence.
The SIU investigation could now provide an independent statutory process through which the relevant contracts and financial transactions can be examined.
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What happens next?
The SIU is expected to begin examining the documents and transactions covered by the new proclamation.
Investigators will likely focus on procurement processes, contract approvals, payments, claims and the conduct of officials and private companies involved in the agreements.
The R168 million contract will remain one of the most closely watched aspects of the investigation because of its size and the questions raised around the joint venture.
The SIU will ultimately have to determine whether the contracts were lawfully awarded, whether proper procedures were followed and whether any person or company benefited improperly.
For now, Ramaphosa orders SIU probe into Suliman Carrim marks a major development in the scrutiny of public contracts involving Carrim-linked companies.
The investigation covers far more than one agreement, extending to North West Transport Investments and related entities, while the separate eThekwini investigation has also been expanded.
The findings could have significant consequences if investigators uncover evidence of corruption, serious maladministration or financial losses.
For the public, the investigation will be closely watched because it involves substantial public contracts and questions about how state resources were managed.
Until the SIU completes its work, however, allegations should remain allegations and any conclusions about individual wrongdoing should be based on verified evidence and the eventual findings of the investigation.
Mainstream media references
- IOL — “Ramaphosa orders SIU probe into Carrim’s North West transport contracts”
Reports on the SIU investigation into the North West transport tenders linked to Suliman Carrim, including the R168 million joint venture involving Transnat Coach Lines and Ziggy Investments.
Read the full IOL report - EWN — “Carrim scored 10 tenders worth just over R250m from NW: Premier”
Details the North West government contracts awarded to companies linked to Carrim, including the R168 million commuter transport tender.
Read the full EWN report - TimesLIVE — “The many faces of Suliman Carrim”
Provides background on Carrim’s business interests and his history of securing government and municipal contracts in North West.
Read the full TimesLIVE report - Business Day — “Carrim and Maumela likely to have funded Matlala, probe told”
Covers evidence presented to the Madlanga Commission concerning Carrim, Morgan Maumela and Vusimusi “Cat” Matlala, providing context to the wider scrutiny surrounding Carrim’s business dealings.
Read the full Business Day report
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